Debt Collection Murders

Posted on Apr 27, 2011 7:54pm PDT

Two horrifying debt collection stories have been reported this month out of Indonesia. Last week an Indonesian debt collector was murdered by a consumer for trying to collect a debt. Earlier this month, a consumer was murdered
by a debt collector for not paying his bill. The two stories demonstrate the raw emotions at play in the debt collection arena.

The first story involved a debt collector attempting to collect a debt on behalf of Citibank. According to an investigation by the Indonesian Central Bank, Citibank hired a third party debt collector to help collect a debt of approximately $11,500.00. When the consumer (who was a local politician) appeared at a Citibank office to contest the debt, he was tortured and killed by the debt collectors. The Indonesian Central Bank has alleged that Citibank violated certain protocols by hiring a third party debt collector too quickly. The Indonesian government has threatened to revoke Citibank's authority to issue credit if they do not overhaul their debt collection practices.

The second story involved a debt collector who was trying to collect a debt from a member of the Indonesian military. It's alleged that the debtor along with other members of the Indonesian military surrounded the debt collector outside the debt collector's office. The debt collector was allegedly taken away, tortured, and then released. He died later from his wounds.

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